Market Review July

Currency Skirmishes

The many statements made in July by the BRICS countries in anticipation of the announcement of a new international currency appear to be the prelude to a full-scale currency war. The tensions in Niger and in Africa as a whole are a shift from Western to Russian-Chinese influence. Against this backdrop, it is hardly surprising to see the USD weaken and the CHF appreciate against all currencies.

Equity markets remain relatively calm for the time being, continuing their recovery phase. Swiss blue-chip stocks are weighing on the flagship index, which continues to lag.

The Fed has once again raised interest rates by 25 basis points. Despite this, long-term rates are stagnating, which means that bond indices are underperforming. Swiss real estate is slightly positive. Funds in general are rather disappointing this year. Finally, commodities rebounded, with oil making a strong contribution.

The risk indicator is very low, except for commodities.

MAIN performances

XO Risk Aversion Index - Composite 250D

XO Risk Aversion Index - Components